World News
Maersk Line Marks Q2 Profit in Face of Higher Bunker Costs
A.P. Møller - Mærsk A/S (Maersk) today in its interim financial results for the 2017 Q2 period, reported that Maersk Line, despite contending with higher bunker prices, achieved a net profit of $339 million during the period, a $490 million year-on-year increase.
Maersk Line is noted to have paid an average of $313 per metric tonne (pmt) for bunkers during the 2017 Q2 period, up from $194 pmt during the same period of 2016.
"Maersk Line is again profitable delivering in line with guidance, with revenue growing by USD 1bn year-on-year in the second quarter. The profit was USD 490m higher than the same quarter last year, based on higher rates," said Søren Skou, Maersk's CEO.
Maersk Line saw a $545 million increase in operating expenses, which the company largely attributes to a 61 percent increase in bunker price, as well as a 1.7 percent increase in volumes.
The container line saw a 1.6 percent year-on-year increase in unit cost at fixed bunker price, which is noted to have been negatively impacted by lower utilisation and less backhaul volumes, but partially offset by lower charter rates.
Maersk notes that its focus on cost efficiency across all of the group's businesses "remains high."
Maersk Line's Q2 results come in contrast to the previous quarter's results, when Maersk Line posted a 2017 Q1 loss of $66 million, noting that a modest rise in freight rate failed to offset surging bunker prices.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 655.50 | 2.00 | 808.50 | 4.50 |
| Rotterdam | 619.00 | 0.00 | 789.00 | 8.00 |
| Houston | 628.50 | 7.50 | 812.50 | 1.50 |
| Fujairah | 653.50 | 4.50 | 900.00 | 2.50 |
| Global 20 Ports Average | 672.00 | 0.50 | 885.00 | 7.00 |
| Global 4 Ports Average | 639.00 | 2.50 | 827.50 | 2.00 |
| Global Average Bunker Price | 727.50 | 1.50 | 933.50 | 5.00 |
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